Blackham Resources' acquisition of Wiluna is finalised, funds raised

Blackham Resources (ASX: BLK) shares are expected to lift today after the Wiluna plant & infrastructure acquisition became unconditional.
All
conditions precedent have now been satisfied, with completion of the
deal expected to take place within a week, with Blackham then formally
taking control of the Wiluna assets.
The funds raised will fast track drilling aimed at converting resources into reserves and target high priority exploration areas.
Blackham's shares are currently trading 26% higher than the last trade before the acquisition was announced.
The acquisition complements Blackham's wholly-owned Matilda project - and positions the company as a near-term gold producer with a very large prospective exploration package.
The cost is $2 million upfront and $2.6 million in deferred production payments, which equates to < $1/oz of gold resource.
Investors
have already shown support for the deal, with a further $1.86 million
raised at $0.21 via a placement to sophisticated and professional
investors.
The placement is in addition to the $6 million in undrawn funds from the Great Central Gold Pty Ltd Convertible Note Facility.
Bryan
Dixon, managing director of Blackham Resources, commented: “The
additional funding allows Blackham to fast track drilling programmes
aimed at conversion of resources into reserves and target high priority
exploration areas.
"It will also allow for further mining and
processing studies to optimise the integration of the Matilda deposits
with the Wiluna gold plant.”
4.3 million gold ounce resource base
The
consolidated Matilda & Wiluna Gold Project synergies include a JORC
Resource of 40 million tonnes at 3.3g/t gold for 4.3 million ounces,
with a land holding of 780 square kilometres and 55 kilometres of mine
strike.
Blackham will continue to focus on free-milling, open-pit and shallow underground targets from Matilda.
Highlighting
the prospectivity of the area, the Wiluna Mine has historically
produced 4 million ounces over 100 years within an area of only 4 square
kilometres.
Processing plant / infrastructure
The
processing plant has a capacity of 1.1 – 1.5 Mtpa and is able to treat
oxide ores for production of 80,000-100,000 ounces of gold annually.
The
Wiluna plant operated up until June 2013. Blackham’s ability to use the
plant in its current location considerably reduces the cost of
developing the free milling open pit Matilda deposits.
Additional
infrastructure includes permitted borefields, a 350 person
accommodation village, established sealed airstrip and roads, approvals
and licenses.
New drilling
Last month
Blackham recommenced drilling at its Matilda Gold Project, including
its first drilling at the Galaxy and Mentelle prospects.
The
program will also improve resource confidence by converting inferred
gold ounces to the indicated category, thus substantiating a long-term
mining operation.
Analysis
The impact
of the acquisition of the Wiluna Gold Project and infrastructure is
that Blackham will save millions of dollars in development costs for the
Matilda Gold Project and will slash years off the development
timetable.
Funding of the deal will be from Blackham's $13 million facility with Great Central Gold Pty Ltd.
The acquisition sets Blackham apart from its peers as it moves from the ranks of explorer to developer.
The
next steps for Blackham will be to build up a 500,000 to 600,000
reserve, after which the company will then outline a timeline to
production.
There is further news flow ahead as Blackham can now fast track drilling aimed at converting resources into reserves and target high priority exploration areas.


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